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New Income tax Code to be developed internally by CBDT, says Revenue SecretaryKejriwal to remain in judicial custody till Aug 8CCI approves combination involving Amazon Asia-Pacific, Frontizo, Appario, Haverl and CRPLUS economy grows by 2.8% in Q227 companies have cumulatively invested Rs 465 crore under PLI Scheme for IT HardwareCus - Adjudication proceedings initiated on the ground of 'illegal export' whereas seizure was on the belief that there is 'illegal import' - Clear lack of jurisdiction: HCIndonesia introduces golden visa programme to attract investmentCus - An assessee cannot be deprived of its justifiable money - Refund to be granted along with interest @8%, although Act provides interest @6% - Difference of 2% to be recovered from officers responsible and mention be made in their service records - Cost of Rs.1 lakh also payable: HCRailways deploys Kavach on 1465 Route km and 144 locomotives on South Central RailwayCus - It is settled law that Tribunal cannot travel beyond the scope of relief and the case made out in the show cause notice: HCHeavy rains batter Pune; 6 dead; Snafu at Mumbai AirportCus - RoSCTL Scheme - Right accrued pursuant to any law and/or Scheme in favour of the person cannot be denied merely due to any technical error and/or glitch: HC18.6 lakh candidates signed-up on 'FutureSkills PRIME' for Re-skilling of IT ManpowerST - Not only is the assessee a PSU but also if the tax had been paid on reverse charge basis, they would have been entitled to take credit - Net effect is the exercise is revenue neutral - Tribunal rightly set aside the penalty: HCSC Constitution Bench upholds rights of States to levy royalty on mineral taxGST - DRC-01 was not accompanied by SCN - Order passed - Violation of principles of natural justice - Orders set aside and matter remanded: HCAustralia notifies sanctions against Israel for West Bank violenceBudget 2024 plays unfair with property owners; redefines HNIs!Delhi HC imposes Rs 1 lakh fine for defaming judges on social mediaBudget 2024: A Comprehensive Perspective on GSTUS cautions tech start-ups on security threats from overseas investorsTaxonomy is not about taxesBudget for Vikasit BharatWill the Old Tax Regime be Consigned to A Margadarshak Role?

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Demonetisation ke Side Effects!!


Some back of the envelop calculations on Demonetisation

1.In terms of value, the annual report of Reserve Bank of India (RBI) of 31 March 2016 stated that total bank notes in circulation were valued to Rs. 16.42 lakh crore of which nearly 86% i.e. around Rs. 14.18 lakh crore was Rs. 500 and Rs. 1000 banknotes.

2A Rs. 4,500/- (previously Rs. 4,000/-) of Old High Denomination (OHD) Notes can be exchanged at a time. This will be reviewed after 24th November, 2016. During the 50 days window, at least two more opportunities of exchange may have to be given. Assume that 40% out of 125 Crore of population (excluding children, aged etc.) get OHD notes exchange each time. Thus, 50 Crore people X Rs. 4,500/- X 3 times = Rs. 6.75 Lakh Crore of OHD notes will get exchanged.

2B. No questions will be asked for amount upto Rs. 2,50,000/- deposited in the account of housewives. If Rs. 2,50,000/- is deposited in Bank Accounts of only 1 Crore housewives, it will result in deposit of Rs. 2.50 Lakh Crores OHD Notes.

2C. There are around 25.51 Crore Jan Dhan Accounts. If Rs. 50,000/- is deposited in half of Jan Dhan Accounts, it will result in deposit of around Rs. 6.37 Lakh Crore OHD Notes (12.75 Crore Accounts X Rs. 50,000/- per account).

3. Thus, above 3 avenues alone will be more than sufficient (6.75 + 2.50 + 6.37 = Rs. 15.62 Lakh Crore) to cater to the need of entire value of Rs. 14.18 Crore of OHD Notes.

These are only assumptions. Views are personal.

Rameshchandra Kabra 17/11/2016

 

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